Fitch downgrades Kangde Xin

Fitch Ratings said it downgraded Kangde Xin Composite Material Group Co., Ltd.'s long-term foreign-currency issuer default rating to RD (restricted default) and senior unsecured rating to C with a recovery rating of RR4 from B+.

The downgrades follow news that the company did not repay ¥1 billion in short-term commercial paper that came due, Fitch said.

The commercial paper was issued by Kangde Xin and is the company's senior unsecured obligation, the agency noted.

The non-payment is consistent with an RD rating, signifying the uncured expiry of any applicable grace period, cure period or default forbearance period following a payment default on a material financial obligation, Fitch explained.

The company informed the agency in December that there were no significant changes in its operation or financial position from year-end September 2018, Fitch said.

But the non-payment suggests a lack of systemic financial management, the agency said.

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